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DECISION

PROMULGATING THE MECHANISM ON CENTRAL BUDGET CAPITAL SUPPORTS FOR INVESTMENT IN THE DEVELOPMENT OF COASTAL ECONOMIC ZONE INFRASTRUCTURE SYSTEMS

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the December 16, 2002 Law on the State Budget;

Pursuant to the November 29, 2005 Investment Law;

Pursuant to the Government's Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones;

At the proposal of the Minister of Planning and Investment,

DECIDES:

Article 1. Scope of regulation and subjects of application

1. This Decision prescribes the conditions, principles, criteria, types of projects, works entitled to central budget capital supports for investment in the development of technical and social infrastructure systems of coastal economic /ones, and the management and use of this support capital source.

2. A coastal economic zone entitled to central budget investment capital supports under this Decision must satisfy the following conditions:

a/ Being included in the planning on develop­ment of Vietnam's coastal economic zones till 2020 under the Prime Minister's Decision No. 1353/QD-TTg of September 23, 2008;

b/ Being established under the Prime Minister's decisions and operating under the Government's Decree No.29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones;

c/ Having the Management Boards set up under the Prime Minister's decision.

Article 2. Principles for allocation of central budget support capital

1. Central budget capital will be allocated to support the investment in the development of essential technical and social infrastructure systems, ensuring the operation and development of coastal economic zones.

2. The allocations of central budget support capital must adhere to the following principles:

a/ Capital is allocated only to projects and works defined in Article 4 of this Decision which are incapable of recovering capital:

b/ Target projects and works must be in line with the approved planning on construction of coastal economic zones and complete all investment procedures under regulations on management of capital construction investment;

c/ The allocation must be concentrated, ensuring investment efficiency; prioritizing important and urgent projects and works which are to be completed in the plan period.

Article 3. Priority principles and criteria for allocation of central budget support capital

1. The allocation of central budget capital in support of coastal economic zones must adhere to the following priority principles:

a/ Coastal economic zones have investment projects and works of motive nature and important significance for branch and domain development, which have investment certificates or investment decisions and a registered total investment capital of VND 20 trillion or more;

b/ Coastal economic zones are established in localities meeting with socio-economic difficulties;

c/ Coastal economic zones are investing in the construction of essential technical infrastruc­ture systems, having projects on ground clearance compensation and resettlement for projects and works defined at Point a of this Clause.

2. Criteria for, and methods of determination of, central budget support capital are provided in the Appendix to this Decision.

Article 4. Projects, and works entitled to central budget support capital

1. Investment in the construction of trunk road systems in coastal economic zones and systems of roads linking coastal economic zones with outside road systems.

2. Compensation and ground clearance for projects and works defined at Point a. Clause 1, Article 3 of this Decision.

3. Compensation, ground clearance and construction of technical and social infrastructures of workers' dormitories and resettlement zones for people whose land in coastal economic zones has been recovered.

4. Investment in the construction of concentrated solid waste treatment zones and concentrated wastewater treatment systems of industrial parks and non-tariff areas in coastal economic zones (including wastewater drainage systems and concentrated wastewater treatment stations).

Article 5. Management and use of central budget support capital

1. The management, use, settlement and final settlement of central budget support capita! prescribed in this Decision comply with the law on capital construction investment management, the State Budget Law and relevant laws.

2. Central budget support capital, which has been used improperly, shall be recovered by the central budget.

Article 6. Sources of central budget support capital

1. Targeted support capital from the central budget, which shall be allocated according to annual plans.

2. Government bond capital for systems of important trunk roads.

3. Official development assistance (ODA).

Article 7. Rights and responsibilities of the Ministry of Planning and Investment

1. Annually, based on the capability to balance investment capital of the central budget, the development of coastal economic zones, the demands for and the implementation of projects and works of coastal economic zones, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance and concerned agencies in. projecting plans on central budget support capital for coastal economic zones under this Decision for sum-up into general development investment expenditure estimates for reporting to the Government and submission to the National Assembly for consideration and decision according to the State Budget Law.

2. Annually, the Ministry of Planning and Investment shall assume the prime responsibility for. and coordinate with concerned ministries, branches and localities in. reviewing and assessing the implementation and efficiency of the use of central budget support capital under this Decision and report thereon to the Prime Minister.

Article 8. Powers and responsibilities of provincial-level People's Committees and Economic Zone Management Boards

1.. Powers and responsibilities of provincial-level People's Committees:

a/ To decide on the distribution of central budget support capital for projects and works of coastal economic zones in their localities under this Decision;

b/ To direct, urge and inspect units in using central budget support capital for proper purposes and with efficiency and in accordance with this Decision and current legal provisions;

c/ To manage and use central budget support capital for coastal economic zones in their localities according to law;

d/ To balance local budget capital for investment in the development of technical and social infrastructure systems of coastal economic zones in their localities under the law on management of capital construction investment, the State Budget Law and relevant legal provisions;

e/ To send written reports on the allocation, management, use and use efficiency of central budget support capital for coastal economic zones; the demands for central budget support capital for investment in the subsequent plan year; score determined under the guidance of the Appendix to this Decision to the Ministry of Planning and Investment before July 31 annually for the latter to perform the tasks defined in Article 7 of this Decision.

2. Rights and responsibilities of the Economic Zone Management Boards: To manage and use central budget support capital under Article 39 of the Government's Decree No. 29/2008/ND-CP of March 14. 2008. on industrial parks, export-processing zones and economic zones, and relevant legal provisions.

Article 9. Implementation provisions

1. This Decision takes effect on January 1, 2010.

2. Work items and works of coastal economic zones which are not mentioned in Article 4 of this Decision but have been allocated central budget support capital before the effective date of this Decision continue to be implemented through December 31, 2011, under decisions of competent state agencies.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of concerned provincial-level People's Committees shall implement this Decision.

APPENDIX

CRITERIA FOR. AND METHODS OF DETERMINATION OF, CENTRAL BUDGET SUPPORT CAPITAL FOR INVESTMENT IN DEVELOPMENT OF INFRASTRUCTURE SYSTEMS OF COASTAL ECONOMIC ZONES

(To the Prime Minister's Decision No.J26/2009/QD-TTg of October 26, 2009)

I. Criteria and methods of determination of criteria for allocation of central budget support capital for coastal economic zones

1. Criterion of attraction of investment projects and works: A (score)

This criterion values the degree of investment capital attraction of projects and works implemented in coastal economic zones, based on the comparison with a base project or work capitalized at VND 20 trillion corresponding to 15 points, which is determined according to the following formula:

A = 15 x

Total investment capital of investment projects and works (VND billion)

VND 20 trillion

Total investment capital of investment projects and works means the registered total investment capital, calculated in VND billion, of projects and works with investment certificates or investment decisions granted under the law on investment before July 31 of the plan year (excluding projects and works already commissioned or completed, operation-terminated, temporarily stopped or rescheduled for implementation: not implemented within 12 months after being granted the investment certificates or investment decisions or delayed for 12 months behind the schedule prescribed in the investment certificates or investment decisions).

2. Criterion of the degree of difficulty in budget balance: B (score)

This criterion values the degree of difficulty faced by provinces or centrally run cities with coastal economic zones in balancing the local budget, which is determined as follows:

a/ If the ratio of central budget support capital to the total local budget expenditure is less than 40%, B = 0 (zero):

b/ If the ratio of central budget support capital to the total local budget expenditure is 40% or more, B will be calculated according to the following formula:

x 100-40

3. Criterion of land area for infrastructure development in the plan year: C (score)

This criterion values the degree of land use for development of infrastructure of coastal economic zones in the plan year, based on the comparison with the base land area of 25 ha corresponding to 10 points, which is determined according to the following formula:

Infrastructure development land area means the total land areas of all traffic works, major technical infrastructure facilities of coastal economic zones, projected to be constructed in the plan year (excluding the land areas of works already completed and put to use).

4. Criterion of the degree of budget remittance of coastal economic zones: D (score)

This criterion values the degree of budget remittance of coastal economic zones, based on the comparison with the base contribution level of VND KM) billion corresponding to 5 points, which is determined according to the following formula:

Total budget revenue in a coastal economic zone means the total collected tax amounts (excluding value-added tax and excise tax on imports) and other lawful revenues in the coastal economic zone, which are paid into the State Treasury of the year preceeding the plan year.

5. Additional criteria:

a/ Criterion of the level of compensation, ground clearance of big investment projects in coastal economic zones: E (score)

This criterion is determined on the basis of comparison between the total used land areas of big projects and a base project of 150 ha corresponding to 10 points, which is determined according to the following formula:

Total used land area of big projects means the total land area under compensation and ground clearance of big investment projects in economic zones, which have been granted the investment certificates or investment decisions (applicable only to on-going projects with an implementation duration not exceeding 2 years).

b/ Criterion of the degree of development priority of coastal economic zones: F (score)

This criterion is determined as follows:

- Coastal economic zones enjoying development priority under the Prime Minister's Decision No. 1353/QD-TTg of September 23, 2008: F = 10 points;

- The remaining coastal economic zones: F = 0 (zero) point.

The data for determination of points of the above-said criteria are the data of the year preceeding the plan year.

6. Total score of a coastal economic zone: K (score)

K=A+B+C+D+E+F

The total score will be rounded on the principle that 0.5 point or higher is rounded up to 1 point.

II. Determination of central budget support capital for a coastal economic zone

The central budget support capital of a plan year for a coastal economic zone is determined according to the following formula:

Of which:

Vi. is total central budget support capital, calculated in VND billion, of the plan year for the coastal economic zone i;

V is total central budget capital, calculated in VND billion of the plan year to support investment in balance with all localities having coastal economic zones;

Ki is total score of the coastal economic zone i. determined under the provisions of Section I;

n is number of coastal economic zones established by the time of formulation of an annual plan